You purchased 300 shares of a non-dividend paying stock at $50.00 per share using 50% margin at a 10% annual interest rate. A year later you sold the stock for $40.74 and paid your annual interest on the margin loan. You paid $20 in commission in total. What was your total loss on this investment?
You purchased 300 shares of a non-dividend paying stock at $50.00 per share using 50% margin at a 10% annual interest rate. A year later you sold the stock for $40.74 and paid your annual interest on the margin loan. You paid $20 in commission in total. What was your total loss on this investment?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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You purchased 300 shares of a non-dividend paying stock at $50.00 per share using 50% margin at a 10% annual interest rate. A year later you sold the stock for $40.74 and paid your annual interest on the margin loan. You paid $20 in commission in total. What was your total loss on this investment?Expert Solution
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